Pro Forma II: Investment Waterfalls

Welcome to the Course!

Before you begin...

Introduction to Waterfall Structures

Part 1: Distributing Operating Cashflow

Part 2: Waterfall Distribution of Terminal

Excel Modeling: Financial Performance for Each Partner

Modifying Basic Model for More Flexibility

Separating Tier One and Tier Two Cashflows

Modeling Unpaid Preferred Return that is Not Compounded

Modeling for Flexibility Based on Hurdle Rate

Different Approaches to Modeling with a Hurdle Rate Requirement

Permitting the Promote Before the Property is Sold

Multiple Tier Waterfall Structure

When GP and LP Do Not Receive Cashflow Simultaneously

Up Next: Test Your Knowledge

Pro Forma II: Investment Waterfalls Quiz

Before you go...